"Preparing for the Resumption of Student Loan Payments: Updates and Tips"
Over 40 million student loan borrowers will resume payments after the end of the student loan pause in August. The student loan landscape has undergone significant changes, including loan servicing, repayment plans, and student loan forgiveness programs. The Biden administration is developing a new income-based repayment plan that could reduce monthly payments by 50% or more and accelerate loan forgiveness. The Education Department's student loan servicing may buckle under the strain of millions of borrowers resuming repayment. The IDR Account Adjustment will allow borrowers to receive credit towards their student loan forgiveness term under income-driven repayment plans. New student loan forgiveness regulations will go into effect on July 1, expanding access and relief for several forgiveness programs.